Brazilian carrier Gol secured approval on 20 May of its financial restructuring plan after filing for Chapter 11 bankruptcy last year.
The Rio de Janeiro-based airline says that, with approval from theUS Bankruptcy Court for the Southern District of New York,it is on track to emerge from the restructuring process early next month.
Clearing the last major hurdle in the Chapter 11 bankruptcy process comes after Gol secured last week $1.9 billion in exit financing, with $1.25 billion coming from anchor investors Castlelake and Elliott Investment Management.
The Rio de Janeiro-based carrier also secured $50 million from the ad hoc group Abra Bondholders, $30 million from the company’s public rights offering and $570 million from “other investors”.
The company previously negotiated concession packages totalling $1.1 billion from aircraft lessors “covering all aircraft in Gol’s fleet”. The deals provide support to clear its maintenance backlog “while also providing permanent savings on rent and end-of-lease obligations”.
Reworked agreements with aircraft supplier Boeingmeanwhile, provide more than $260 million in concessions and $700 million of “total relief”, Gol says.
Gol notes it has also received support from Brazilian banks in the form of $150 million in restructured debt and generating $340 million through receivables factoring manoeuvres.
The company filed for Chapter 11 bankruptcy protection in January 2024.At the time, Gol cited its debt burden, as well as 737 Max delivery delays, as contributing to its financial difficulties.
Now, with the process nearing completion, Gol parent Abra Group is expected to pursue a potential tie-up with Azul in a bid to create Brazil’s largest airline.
Gol recently reported a profit of R$1.4 billion ($250 million) during the seasonally strong first quarter, whilerevenue during the period increased nearly 20%, year on year to R$5.6 billion.
